Self-Regulatory Organizations; NYSE American LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Modify the NYSE American Options Fee Schedule Regarding Fees and Rebates Applicable to Manual Transactions

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<title>Federal Register, Volume 91 Issue 205 (Monday, October 26, 2026)</title>
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[Federal Register Volume 91, Number 205 (Monday, October 26, 2026)]
[Notices]
[Pages 67356-67360]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-21748]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-106720; File No. SR-NYSEAMER-2026-93]


Self-Regulatory Organizations; NYSE American LLC; Notice of 
Filing and Immediate Effectiveness of a Proposed Rule Change To Modify 
the NYSE American Options Fee Schedule Regarding Fees and Rebates 
Applicable to Manual Transactions

October 21, 2026.
    Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of 
1934 (``Act'') \2\ and Rule 19b-4 thereunder,\3\ notice is hereby given 
that, on October 14, 2026, NYSE American LLC (``NYSE American'' or the 
``Exchange'') filed with the Securities and Exchange Commission (the 
``Commission'') the proposed rule change as described in Items I and II 
below, which Items have been prepared by the self-regulatory 
organization. The Commission is publishing this notice to solicit 
comments on the proposed rule change from interested persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 15 U.S.C. 78a.
    \3\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange proposes to modify the NYSE American Options Fee 
Schedule (``Fee Schedule'') regarding fees and rebates applicable to 
Manual transactions. The proposed rule change is available on the 
Exchange's website at <a href="http://www.nyse.com">www.nyse.com</a> and at the principal office of the 
Exchange.

II. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

    In its filing with the Commission, the self-regulatory organization 
included statements concerning the purpose of, and basis for, the 
proposed rule change and discussed any comments it received on the 
proposed rule change. The text of those statements may be examined at 
the places specified in Item IV below. The Exchange has prepared 
summaries, set forth in sections A, B, and C below, of the most 
significant parts of such statements.

A. Self-Regulatory Organization's Statement of the Purpose of, and the 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    The Exchange proposes to modify the Fee Schedule to adjust the fees 
and rebates applicable to Manual transactions. Specifically, the 
Exchange proposes to (1) amend the fees applicable to Manual 
transactions in non-Penny issues executed by e-Specialists, Market 
Makers, and Specialists (collectively, ``Market Makers''), and (2) 
establish a rebate payable to Floor Broker orders that trade with a 
Market Maker order on the Trading Floor (``Trading Floor'' or 
``Floor''). The Exchange proposes that these changes become effective 
October 14, 2026.\4\
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    \4\ The Exchange previously filed to amend the Fee Schedule 
several times beginning on January 2, 2026, all of which filings 
were withdrawn and replaced by another filing. Most recently, the 
Exchange amended the Fee Schedule on September 30, 2026 (SR-
NYSEAMER-2026-90) which filing the Exchange withdrew on October 14, 
2026 and replaced with this filing. The Exchange notes that a 
previous filing proposed changes to a complex order surcharge that 
are not included in this filing.
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    With respect to the first proposed change, the Exchange proposes to 
amend Section I.A. of the Fee Schedule, which sets forth rates for 
Electronic and Manual transactions in both Penny and non-Penny issues. 
Currently, a $0.50 per contract fee applies to Market Makers' Manual 
transactions in non-Penny issues, except for those in MXEA, MXEF, 
MXUSA, MXWLD, and MXACW. The Exchange proposes to increase this fee to 
$0.90 per contract and then, effective November 1, 2026, increase the 
fee to $1.00 per contract. The increase to $1.00 per contract would 
align the Exchange's fee for Market Maker Manual transactions in non-
Penny issues consistent with similar fees adopted and proposed by other 
exchanges.\5\ The two-tiered increase is necessary to simplify the 
Exchange's billing process during the transition and to allow market 
participants sufficient time to adapt.
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    \5\ NASDAQ PHLX LLC increased the Non-Penny Symbol Floor Options 
Transaction Charges for Lead Market Makers and Market Makers from 
$0.50 to $1.00 per contract (See Securities Exchange Act Release No. 
105913 (July 14, 2026), 91 FR 44933 (July 17, 2026) (SR-Phlx-2026-
44) (Notice of Filing and Immediate Effectiveness of Proposed Rule 
Change To Amend Options 7, Section 4)). In addition, BOX Exchange 
LLC recently proposed to increase Market Maker Qualified Open Outcry 
and FLEX Open Outcry Order fees from $0.50 to $1.00 (See SR-BOX-
2026-20).
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    The Exchange also proposes to establish a rebate of $0.20 per 
contract payable to Floor Broker orders that trade with Market Maker 
orders on the Trading Floor. For Floor Brokers that participate in the 
FB Prepay Program, the proposed rebate would apply in lieu of any 
rebates earned through the Manual Billable Rebate Program as provided 
in Section III.E. of the Fee Schedule. The Exchange proposes to add new 
text to Section III.E. of the Fee Schedule describing the proposed 
rebate.
    The Exchange believes that the proposed rebate for Penny and non-
Penny issues would strengthen the Exchange's competitive position for 
order flow by incentivizing Floor Brokers to participate on the Trading 
Floor, including when the counterparty to such trading is a Market 
Maker, rather than routing such orders to other exchanges' trading 
floors. The Exchange operates in a highly competitive market for order 
flow, and Floor Brokers may readily direct their order flow to 
competing exchanges that offer more favorable pricing. Accordingly, the 
Exchange believes the proposed rebate is a reasonable means of 
remaining competitive and attracting order flow to its Trading Floor. 
The Exchange notes that, in August 2026, executions in non-Penny issues 
represented only 12% of executed Manual volume, underscoring that the 
proposed fee increase is much smaller in scope than the proposed Floor 
Broker rebate, which is applicable to executions in both Penny and non-
Penny issues.
    Taken together with the proposed rebate payable to Floor Broker 
orders, the Exchange believes that the proposed increase in the Market 
Maker fee for Manual transactions in non-Penny issues from $0.50 to 
$0.90 per contract and then to $1.00 per contract beginning on November 
1, 2026 would, on balance, not discourage Market Makers from continuing 
to participate in transactions on the Trading Floor, thereby promoting 
trading opportunities and competition on the Trading Floor to the 
benefit of all market participants. Specifically, the Exchange notes 
that Market Maker participation in non-Penny issues on the Trading 
Floor has continued to grow since the Exchange's initial fee increase 
on January 2, 2026. For example, in December 2025, prior to the 
Exchange's initial filing, Market Makers paid $0.50 per contract for 
Manual transactions in non-Penny issues and were involved in only 12% 
of executed Manual volume in non-Penny issues. However, in August 2026,

[[Page 67357]]

after the fee was raised to $1.00 per contract for Manual executions in 
non-Penny issues and, subsequently, to $0.90 per contract, Market 
Makers were involved in 20% of executed Manual volume in non-Penny 
issues. Despite higher Market Maker fees for Manual transactions, the 
Exchange has continued to observe elevated Market Maker interest on the 
Trading Floor, even in non-Penny issues where the fee was specifically 
increased, demonstrating that this fee has not deterred, and will not 
deter Market Maker participation.
    The Exchange further notes that the amount of the proposed fee for 
Market Maker Manual transactions in non-Penny issues is within the 
range of fees currently in place for responses by Market Makers (and 
other market participants) in non-Penny issues in various electronic 
paired-order auction mechanisms on other options exchanges, which is 
largely analogous to the Manual transactions impacted by the proposed 
fee increase on the Trading Floor. For example, Cboe EDGX Exchange, 
Inc. (``EDGX'') imposes a $1.05 per contract fee on all market 
participants (including Market Makers) responding to Automated 
Improvement Mechanism Auctions (``AIM Auctions''), while charging the 
paired contra order only $0.02 per contract in non-Penny issues.\6\
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    \6\ See EDGX Fee Codes and Associated Fees, available at Cboe 
EDGX Options Exchange Fee Schedule.
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    In this example, the large disparity in fees between the auction 
responder and the paired contra order demonstrates the unique position 
of the responder to evaluate the full terms of a transaction 
immediately prior to execution, including size, pricing, and 
counterparty interest. This position enables responders to EDGX AIM 
Auctions to exercise discretion in determining whether to engage in a 
trade under informed conditions. In addition, the responder has a 
guaranteed participation entitlement of up to 60% of the trade under 
the relevant rules, even in the absence of price improvement. This 
allocation represents a meaningful structural advantage, as it ensures 
a substantial share of order flow once a responder elects to 
participate. The Exchange believes that Market Makers hold a similar 
advantageous position in choosing to participate in Manual transactions 
on the Trading Floor and, therefore, believes that the difference in 
fees between Market Makers and other market participants for Manual 
transactions in non-Penny issues is justified.
2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with Section 6(b) of the Act,\7\ in general, and furthers the 
objectives of Sections 6(b)(4) and (5) of the Act,\8\ in particular, 
because it provides for the equitable allocation of reasonable dues, 
fees, and other charges among its members, issuers and other persons 
using its facilities and does not unfairly discriminate between 
customers, issuers, brokers or dealers.
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    \7\ 15 U.S.C. 78f(b).
    \8\ 15 U.S.C. 78f(b)(4) and (5).
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The Proposed Rule Change Is Reasonable
    The Exchange operates in a highly competitive market. The 
Commission has repeatedly expressed its preference for competition over 
regulatory intervention in determining prices, products, and services 
in the securities markets. In Regulation NMS, the Commission 
highlighted the importance of market forces in determining prices and 
SRO revenues and, also, recognized that current regulation of the 
market system ``has been remarkably successful in promoting market 
competition in its broader forms that are most important to investors 
and listed companies.'' \9\
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    \9\ See Securities Exchange Act Release No. 51808 (June 9, 
2005), 70 FR 37496, 37499 (June 29, 2005) (S7-10-04) (``Reg NMS 
Adopting Release'').
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    There are currently 20 registered options exchanges competing for 
order flow. Based on publicly-available information, and excluding 
index-based options, no single exchange has more than 16% of the market 
share of executed volume of multiply-listed equity and ETF options 
trades.\10\ Therefore, currently no exchange possesses significant 
pricing power in the execution of multiply-listed equity and ETF 
options order flow. More specifically, in August 2026, the Exchange had 
11.30% market share of executed volume of multiply-listed equity and 
ETF options trades.\11\ In such a low-concentrated and highly 
competitive market, no single options exchange possesses significant 
pricing power in the execution of options order flow. Within this 
environment, market participants can freely and often do shift their 
order flow among the Exchange and competing venues in response to 
changes in their respective pricing schedules.
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    \10\ The OCC publishes options and futures volume in a variety 
of formats, including daily and monthly volume by exchange, 
available here: <a href="https://www.theocc.com/Market-Data/Market-Data-Reports/Volume-and-Open-Interest/Monthly-Weekly-Volume-Statistics">https://www.theocc.com/Market-Data/Market-Data-Reports/Volume-and-Open-Interest/Monthly-Weekly-Volume-Statistics</a>.
    \11\ Based on a compilation of OCC data for monthly volume of 
equity-based options and monthly volume of equity-based ETF options, 
see id., the Exchange's market share in equity-based options 
increased from 8.53% for the month of August 2025 to 11.30% for the 
month of August 2026.
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    The Exchange believes that the ever-shifting market share among the 
exchanges from month to month demonstrates that market participants can 
shift order flow or discontinue or reduce use of certain categories of 
products in response to fee changes. Accordingly, competitive forces 
constrain options exchange transaction fees. Specifically, as it 
relates to Manual executions, Market Makers, like other market 
participants, retain the ability to adjust their trading behavior, 
reduce participation, or reallocate order flow and liquidity-provision 
activity across competing exchanges in response to fee changes.
    The Exchange believes that the proposed rebate is reasonable 
because, in a highly competitive market where Floor Brokers may readily 
direct order flow to other exchanges' trading floors, the rebate would 
strengthen the Exchange's competitive position by incentivizing Floor 
Brokers to continue directing Manual orders to the Trading Floor, 
including orders that trade against Market Makers, thereby promoting 
trading opportunities and competition on the Floor for the benefit of 
all market participants. The Exchange also believes that the amount of 
the proposed fee for Market Maker Manual transactions in non-Penny 
issues is reasonable, as it is (i) narrow in scope, applying only to 
non-Penny Manual transactions, which represent just 12% of executed 
Manual volume; (ii) unlikely to discourage Market Maker participation, 
which has continued to grow after the implementation of the increase; 
and (iii) consistent with, and more moderate than, comparable fee 
disparities imposed by another options exchange on responders in 
analogous electronic paired-order auctions (e.g., EDGX's AIM Auction).
    Furthermore, the Exchange believes that assessing a higher fee for 
Manual transactions on the Trading Floor is reasonable considering the 
distinct advantages afforded to Floor-based Market Makers. Floor-based 
Market Makers who, by virtue of their physical presence and 
participation model, are uniquely positioned to evaluate the full terms 
of a transaction, including size, pricing, and counterparty interest, 
immediately prior to execution. This capability enables Floor-based 
Market Makers to exercise discretion in determining whether to engage 
in a

[[Page 67358]]

trade under informed conditions that are not available to off-floor or 
fully electronic participants. In addition, the Exchange's rules 
provide Floor-based Market Makers with a guaranteed participation 
entitlement of up to 60% of the trade for both Solicitation and 
Facilitation Cross Transactions,\12\ even in the absence of price 
improvement. This allocation represents a meaningful structural 
advantage, as it ensures a substantial share of order flow if a Floor-
based Market Maker elects to participate.\13\ Together, these 
features--the ability to assess trading opportunities in real time 
before committing capital and the certainty of receiving a guaranteed, 
significant allocation--enhance the likelihood of favorable execution 
outcomes and revenue opportunities for Floor-based Market Makers.
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    \12\ See Rule 934.3NY and Rule 934.1NY(4)(A).
    \13\ While some Market Maker Manual volume derives from upstairs 
paired transactions, where these advantages are not present, such 
transactions represent only a small percentage of overall Market 
Maker Manual activity and do not diminish the significance of the 
described benefits.
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    Accordingly, the Exchange believes it is reasonable to assess 
higher fees on Market Maker Manual transactions in non-Penny issues. 
This fee differential is consistent with the fee structure of another 
options exchange's offerings in its electronic paired-order auction, 
which similarly differentiate fees based on the trading privileges and 
informational advantages available to certain participants. For 
example, EDGX's AIM Auction charges all market participants responding 
to an auction (including Market Makers) $1.05 per contract, while 
charging the paired contra order only $0.02 per contract in non-Penny 
issues--in each case reflecting a substantial fee differential tied to 
the distinct informational and structural advantages afforded to the 
responder, largely similar to the advantages afforded to Floor-based 
Market Makers here. The differential between the fee charged to Market 
Makers and the fee charged to other participants in non-Penny Manual 
transactions reflects the enhanced trading privileges, informational 
advantages, and allocation guarantees uniquely available to Trading 
Floor-based participants and appropriately aligns fees with the 
relative value of these benefits as compared to other market 
participants operating without such advantages.
    The Exchange believes that the proposed changes are reasonably 
designed to incent Floor Brokers to increase the number of Manual 
orders directed to the Trading Floor, including orders that trade with 
Market Maker orders. Any increase in trading volume would create more 
trading opportunities for all market participants and would in turn 
attract additional order flow to the Exchange, further contributing to 
a deeper, more liquid market to the benefit of all market participants. 
The Exchange also notes that the proposed rebate is similar in 
structure to incentive programs for Floor Brokers offered by competing 
options exchanges.\14\
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    \14\ See, e.g., BOX Exchange Fee Schedule, Section V. Manual 
Transaction Fees, available at <a href="https://boxexchange.com/assets/BOX-Fee-Schedule-as-of-January-22-2026.pdf">https://boxexchange.com/assets/BOX-Fee-Schedule-as-of-January-22-2026.pdf</a> (offering Floor Brokers that 
submit QOO and FOO Orders a $0.20 per contract enhanced rebate for 
executions that trade with a Floor Market Maker, in lieu of lesser 
per contract rebates also available to Floor Brokers); MIAX Sapphire 
Options Exchange, Section 1) c) Trading Floor Transactions, 
available at <a href="https://www.miaxglobal.com/sites/default/files/fee_schedule-files/MIAX_Sapphire_Fee_Schedule_01212026_b.pdf">https://www.miaxglobal.com/sites/default/files/fee_schedule-files/MIAX_Sapphire_Fee_Schedule_01212026_b.pdf</a> 
(providing for the ``Floor Broker Breakup Credit,'' a $0.20 credit 
applicable to Floor Brokers that submit a QFO or cQFO for executions 
that trade with a Floor Market Maker, instead of the $0.10 Floor 
Broker rebate otherwise available).
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    The Exchange further believes the proposed fee increase is 
reasonable because it is designed to offset the costs associated with 
the proposed Floor Broker rebate, which, as noted above, is intended to 
create more trading opportunities on the Trading Floor for all market 
participants, including Market Makers. As discussed above, Market Maker 
participation on the Trading Floor has continued to grow even as Market 
Maker fees for Manual transactions in non-Penny issues have increased, 
and the Exchange believes the increased order flow generated by the 
proposed rebate would similarly provide Market Makers with additional 
trading opportunities that offset the impact of the higher fee. In 
addition, the Exchange notes that market participants remain free to 
direct their order flow to competing venues if they believe other 
markets offer more favorable fees and rebates. Specifically, Market 
Makers, like other market participants, retain the ability to adjust 
their trading behavior, reduce participation, or reallocate order flow 
and liquidity-provision activity across competing exchanges in response 
to fee changes.
    To the extent the proposed rule change attracts greater volume and 
liquidity by encouraging Floor Brokers to increase their options volume 
on the Exchange in an effort to earn the proposed rebate, the Exchange 
believes the proposed changes would improve the Exchange's overall 
competitiveness and strengthen its market quality for all market 
participants. Against the backdrop of the competitive environment in 
which the Exchange operates, the proposed rule change is a reasonable 
attempt by the Exchange to increase the depth of its market and improve 
its market share relative to its competitors.
The Proposed Rule Change Is an Equitable Allocation of Credits and Fees
    The Exchange believes the proposed rule change is an equitable 
allocation of its fees and credits. With respect to the proposed 
rebate, the Exchange believes it is equitable because it is based on 
the type of business transacted on the Exchange, and Floor Brokers may 
choose whether or not to seek to earn the rebate based on their own 
order-routing decisions. The Exchange also believes the rebate is 
equitable because it is intended to support Floor Brokers' role in 
facilitating the execution of Manual orders, a function that benefits 
all market participants on the Trading Floor, including Market Makers.
    With respect to the proposed fee applicable to Market Maker Manual 
transactions in non-Penny issues, the Exchange believes it is equitable 
for several reasons. First, the fee is designed to offset the costs 
associated with the proposed rebate while encouraging increased 
execution opportunities in Manual transactions on the Trading Floor, 
and an increase in such orders would, in turn, enhance trading 
opportunities for all market participants. The fee is also consistent 
with fees charged, and differences allowed, by EDGX, for analogous 
transactions (e.g., AIM Auction fees). Assessing Market Makers a higher 
fee for Manual transactions in non-Penny issues is equitable because 
Floor-based Market Makers, who account for the majority of Market Maker 
Manual transaction volume in non-Penny issues, occupy a uniquely 
advantaged position relative to other market participants--
specifically, the exclusive ability to evaluate the terms of a 
transaction immediately prior to execution, as well as a guaranteed 
participation allocation of up to 60% of the trade under the Exchange's 
rules.\15\
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    \15\ See note 12, supra.
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    Moreover, the proposal is designed to incent participation on the 
Trading Floor in an effort to make the Exchange a primary execution 
venue and to attract more Manual transactions to the Exchange. To the 
extent that the proposed change attracts more Floor Broker orders to 
the Exchange, this increased order flow would continue to make the 
Exchange a more competitive venue for, among other things, order 
execution. Thus, the Exchange believes the proposed rule change would

[[Page 67359]]

improve market quality for all market participants on the Exchange and, 
as a consequence, attract more order flow to the Exchange thereby 
improving market-wide quality and price discovery.
The Proposed Rule Change Is Not Unfairly Discriminatory
    The Exchange believes it is not unfairly discriminatory to modify 
the fee applicable to Market Maker Manual transactions in non-Penny 
issues because the proposed change would apply to all similarly 
situated Market Maker orders equally, regardless of the identity of the 
Market Maker responding to such orders. The Exchange notes that any 
participant can become a Floor-based Market Maker on the Exchange and 
avail themselves equally to all the benefits and obligations that such 
role entails. As discussed above, the Exchange believes it is not 
unfairly discriminatory to incent order flow to the Exchange through 
the proposed rebate, which would enhance liquidity on the Exchange to 
the benefit of all market participants. The Exchange also believes that 
the proposed rebate payable to Floor Brokers for a Manual order that 
trades with a Market Maker order on the Trading Floor is not unfairly 
discriminatory because it would be available to all similarly situated 
Floor Brokers on an equal and non-discriminatory basis, based solely on 
their order flow and trading activity on the Trading Floor.
    The Exchange further believes that the proposed rebate is not 
unfairly discriminatory to other market participants because it is 
intended to encourage the role performed by Floor Brokers in 
facilitating the execution of orders via open outcry, a function which 
the Exchange wishes to support for the benefit of all market 
participants, including Market Makers, who would benefit from the 
additional execution opportunities generated by increased Floor Broker 
participation. In addition, although the proposed change would increase 
the fee applicable to Market Maker Manual transactions in non-Penny 
issues, the proposed fee is consistent with fees charged, and 
differences allowed, by another options exchange for analogous 
transactions. For example, EDGX's AIM Auction, which charges responders 
(including Market Makers) $1.05 per contract while charging the paired 
contra order only $0.02 per contract in non-Penny issues.
    The Exchange further believes that Market Makers would not be 
discouraged from continuing to participate actively on the Trading 
Floor and would benefit from increased Manual order flow, including 
from Floor Brokers seeking to earn the proposed rebate. Indeed, as 
discussed above, Market Maker participation in non-Penny Manual 
transactions on the Trading Floor grew from 12% in December 2025 to 20% 
in August 2026, notwithstanding higher Market Maker fees already in 
effect for much of that period, demonstrating that a fee differential 
of this magnitude has not discouraged, and is not expected to 
discourage, Market Maker participation.
    The Exchange also believes that the higher fee assessed to Market 
Makers for Manual transactions in non-Penny issues is not unfairly 
discriminatory because it reasonably reflects the uniquely advantaged 
position of Trading Floor-based Market Makers, who account for 
approximately 95% of such volume, relative to other market 
participants. In particular, these Trading Floor-based Market Makers 
possess the exclusive ability to evaluate the full terms of a 
transaction immediately prior to execution and benefit from a 
guaranteed participation allocation of up to 60% of the trade under the 
Exchange's rules.\16\ These features provide Floor-based Market Makers 
with meaningful informational and allocation advantages that are not 
available to off-floor or purely electronic participants. The Exchange 
notes that any participant can become a Floor-based Market Maker on the 
Exchange and avail themselves equally to all the benefits and 
obligations that such role entails. Accordingly, the Exchange believes 
that the differential in fees, which is similar in kind to the 
differential EDGX charges between AIM Auction responders and the paired 
contra orders is appropriately calibrated to the distinct structural 
benefits available to Trading Floor-based Market Makers and therefore 
does not constitute unfair discrimination. Rather, the higher fee 
reflects a rational alignment between pricing and the value of the 
enhanced trading opportunities and execution certainty afforded to 
these participants. Moreover, to the extent that the exercise of these 
advantages contributes to increased Trading Floor activity and attracts 
additional order flow, the proposed fee would enhance overall market 
quality, deepen liquidity, and promote additional trading opportunities 
for all market participants on the Exchange.
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    \16\ See note 12, supra.
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    Finally, the Exchange believes that it is subject to significant 
competitive forces, as described below in the Exchange's statement 
regarding the burden on competition.

B. Self-Regulatory Organization's Statement on Burden on Competition

    In accordance with Section 6(b)(8) of the Act, the Exchange does 
not believe that the proposed rule change would impose any burden on 
competition that is not necessary or appropriate in furtherance of the 
purposes of the Act. Instead, the Exchange believes that the proposed 
changes would encourage the submission of additional liquidity to a 
public exchange, thereby promoting market depth, price discovery and 
transparency and enhancing order execution opportunities for all market 
participants. As a result, the Exchange believes that the proposed 
change furthers the Commission's goal in adopting Regulation NMS of 
fostering integrated competition among orders, which promotes ``more 
efficient pricing of individual stocks for all types of orders, large 
and small.'' \17\
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    \17\ See Reg NMS Adopting Release, note 9 supra, at 37499.
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    Intramarket Competition. The proposed change is designed to attract 
additional order flow to the Exchange. The Exchange notes that any 
participant can become a Floor-based Market Maker on the Exchange and 
avail themselves equally to all the benefits and obligations that such 
role entails. The Exchange believes that the proposed change to Market 
Maker fees for Manual transactions in non-Penny issues, and the 
proposed rebate payable to the Floor Broker orders that trade against 
Market Maker orders on the Trading Floor would encourage Floor Broker 
Manual order flow and would not disincentivize Market Maker activity on 
the Trading Floor. Greater liquidity benefits all market participants 
on the Exchange and increased order flow would increase opportunities 
for execution of other trading interest. The proposed changes would 
apply and be available to all similarly situated market participants 
that execute Manual transactions on the Trading Floor, and, 
accordingly, the proposed changes would not impose a disparate burden 
on competition among market participants on the Exchange.
    Intermarket Competition. The Exchange operates in a highly 
competitive market in which market participants can readily favor one 
of the other 19 competing options exchanges if they deem the Exchange's 
fee levels to be excessive. In such an environment, the Exchange must 
continually adjust its fees to remain competitive with other exchanges 
and to attract order flow to the Exchange. Based on publicly available 
information, and excluding index-based options, no single exchange

[[Page 67360]]

has more than 16% of the market share of executed volume of multiply-
listed equity and ETF options trades.\18\ Therefore, currently no 
exchange possesses significant pricing power in the execution of 
multiply-listed equity and ETF options order flow. More specifically, 
in August 2026, the Exchange had 11.30% market share of executed volume 
of multiply-listed equity and ETF options trades.\19\
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    \18\ The OCC publishes options and futures volume in a variety 
of formats, including daily and monthly volume by exchange, 
available here: <a href="https://www.theocc.com/Market-Data/Market-Data-Reports/Volume-and-Open-Interest/Monthly-Weekly-Volume-Statistics">https://www.theocc.com/Market-Data/Market-Data-Reports/Volume-and-Open-Interest/Monthly-Weekly-Volume-Statistics</a>.
    \19\ Based on a compilation of OCC data for monthly volume of 
equity-based options and monthly volume of equity-based ETF options, 
see id., the Exchange's market share in equity-based options 
increased from 8.53% for the month of August 2025 to 11.30% for the 
month of August 2026.
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    The Exchange believes that the proposed rule change reflects this 
competitive environment because it modifies the Exchange's fees in a 
manner designed to continue to incent participants on the Trading Floor 
to direct trading interest to the Exchange, to provide liquidity and to 
attract additional order flow. To the extent that Floor Brokers are 
encouraged to utilize the Exchange as a primary trading venue for all 
transactions, all Exchange market participants stand to benefit from 
the improved market quality and increased opportunities for price 
improvement. The Exchange notes that it operates in a highly 
competitive market in which market participants can readily favor 
competing venues. In such an environment, the Exchange must continually 
review, and consider adjusting, its fees and credits to remain 
competitive with other exchanges. For the reasons described above, the 
Exchange believes that the proposed rule change reflects this 
competitive environment.

C. Self-Regulatory Organization's Statement on Comments on the Proposed 
Rule Change Received From Members, Participants, or Others

    No written comments were solicited or received with respect to the 
proposed rule change.

III. Date of Effectiveness of the Proposed Rule Change and Timing for 
Commission Action

    The foregoing rule change is effective upon filing pursuant to 
Section 19(b)(3)(A) \20\ of the Act and subparagraph (f)(2) of Rule 
19b-4 \21\ thereunder, because it establishes a due, fee, or other 
charge imposed by the Exchange.
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    \20\ 15 U.S.C. 78s(b)(3)(A).
    \21\ 17 CFR 240.19b-4(f)(2).
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    At any time within 60 days of the filing of such proposed rule 
change, the Commission summarily may temporarily suspend such rule 
change if it appears to the Commission that such action is necessary or 
appropriate in the public interest, for the protection of investors, or 
otherwise in furtherance of the purposes of the Act. If the Commission 
takes such action, the Commission shall institute proceedings under 
Section 19(b)(2)(B) \22\ of the Act to determine whether the proposed 
rule change should be approved or disapproved.
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    \22\ 15 U.S.C. 78s(b)(2)(B).
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IV. Solicitation of Comments

    Interested persons are invited to submit written data, views and 
arguments concerning the foregoing, including whether the proposed rule 
change is consistent with the Act. Comments may be submitted by any of 
the following methods:

Electronic Comments

    <bullet> Use the Commission's internet comment form (<a href="https://www.sec.gov/rules/sro.shtml">https://www.sec.gov/rules/sro.shtml</a>); or
    <bullet> Send an email to <a href="/cdn-cgi/l/email-protection#651710090048060a0808000b1116251600064b020a13"><span class="__cf_email__" data-cfemail="7705021b125a14181a1a121903043704121459101801">[email&#160;protected]</span></a>. Please include 
file number SR-NYSEAMER-2026-93 on the subject line.

Paper Comments

    <bullet> Send paper comments in triplicate to Secretary, Securities 
and Exchange Commission, 100 F Street NE, Washington, DC 20549-1090.

All submissions should refer to file number SR-NYSEAMER-2026-93. This 
file number should be included on the subject line if email is used. To 
help the Commission process and review your comments more efficiently, 
please use only one method. The Commission will post all comments on 
the Commission's internet website (<a href="https://www.sec.gov/rules/sro.shtml">https://www.sec.gov/rules/sro.shtml</a>). Copies of the filing will be available for inspection and 
copying at the principal office of the Exchange. Do not include 
personal identifiable information in submissions; you should submit 
only information that you wish to make available publicly. We may 
redact in part or withhold entirely from publication submitted material 
that is obscene or subject to copyright protection. All submissions 
should refer to file number SR-NYSEAMER-2026-93 and should be submitted 
on or before November 16, 2026.
    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\23\
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    \23\ 17 CFR 200.30-3(a)(12).

Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2026-21748 Filed 10-23-26; 8:45 am]
BILLING CODE 8011-01-P


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